Report: Shoppers Losing Their Appetite For High-End Toys

A more stable selling environment and rational pricing bodes well for store
profitability. “We also saw a significant change in the composition of what was
selling-there were a lot more lower-dollar-value items than we’ve seen in
previous years, and a lot of accessories,” says an NPD analyst, “and those tend
to be a little more profitable.”

Total spending on electronics gained just 6%–to $2.2 billion–in the first week of the holiday season, compared to a gain of 12% in the same period a year ago, reports The NPD Group. And it’s the first time in the six years that NPD has tracked this point-of-sale data that dollar-sales growth has dipped below double digits.